The Stop-Market order has an extra Trailing option that will follow the price and move your open order accordingly. This option is helpful in situations when you want to shift your open Stop-Market order if the price is moved by a certain percentage. It will allow you to set the stop-market order and leave the automation to do the rest with no need to move your order manually.
To enable the Trailing feature, toggle the "Trailing" option while configuring your Stop-Market order.
After, when the Trailing option is enabled, enter the Price step percentage (%) to define at what distance from the current price Trailing should move the order.
Control the price step when Trailing moves the order
Trailing will move the order when the price changes by a set percentage in the price step. You can set up the Price step as a minimum of 0.2%. Here is a step-by-step example of how this feature will work in real trading:
BTC price is 45k, you want to place a Stop order to buy the coin at 47k with a Price step of 5%.
As soon as the price drops by 5% i.e. to 42.75k, your Stop order will be moved to 44.65k (by 5%).
If the price continues to go down, the order will be moved when the price deviation will be 5% again.
As you can see, the Trailing triggers every 5% and move the open order by 5% down or up from the previous position.
Situations when Trailing can be used
There are two trading situations when you can consider using the trailing for your Stop-Market order: Buy the Dip and Sell the Tip. Both provide an advantage when opening and closing the trade.
Buy the Dip
Adding Trailing to your Stop-Market buy order can give you an advantage of a better entry price. Trailing will follow the price down and move the open order until the price reverses and hits it. This way, you can enter the trade at the best price possible, which will provide better results in comparison to an earlier uncertain entry.
Sell the Tip
Another possible use for Trailing is adding it to your Stop-Market sell order which will exit the trade at the best possible price by following the price upwards. This feature is also known as moving trailing stop. In this case, Trailing will follow the price up to and move the open order until the price reverses and hits it. This way, you can sell your coins at the top and avoid moving your Stop orders manually.